Hajia Aisha Mahmud, Commissioner, Customers Affairs, Nigerian Electricity Regulatory Commission (NERC), has cautioned electricity consumers against self-procurement of transformers, cables and accessories without formal agreement with distribution companies.
Mahmud gave the warning at the commission’s three-day Customers Complaints Resolution Meeting with Eko Electricity Distribution Company’s customers on Friday in Lagos, reports The Nation.
The News Agency of Nigeria (NAN) reports that customers at the forum were drawn from Lekki Business Unit which covers Lekki Phase, Ilasan, Ikota, Ikate, Ikate-Elegushi, Osapa, Chevron, Igbo Efon and Agungi.
According to her, it is not the responsibility of the customers to procure transformers for the DisCos.
“In the event that such happens, the customers and the DisCos must sign an undertaking, so we still say do not buy the transformers,” she said.
The commissioner further explained that the Meter Asset Provider (MAP) offers vendor and DisCos financing options for prepaid meters.
Addressing the funding constraints within the Nigerian Electricity Supply Industry (NESI), particularly concerning the National Mass Metering Scheme, she underscored the ongoing financial struggles experienced by industry players.
She highlighted the critical need for adequate funding and financing mechanisms to support initiatives aimed at improving metering infrastructure and addressing the metering deficit in Nigeria.
“Customers often overlook their rights and entitlements; paying for electricity should guarantee not just power but a superior service experience, and customers should assert their rights to quality service when paying their bills.
“It is crucial for customers to understand that investing in the distribution network, including transformer purchases, is not their responsibility as consumers.
“While the cost is factored into the electricity tariff, if customers choose to invest in infrastructure like distribution transformers, the law permits DisCos to incorporate the investment into the tariff, enabling them to earn returns over the asset’s economic lifespan.
“If about N100 million, for instance, is invested in the purchase of the transformers by the DisCos, it is expected to be spread over fifteen years within the economic life of that asset, and recovery of the cost gradually deducted by customers’ billings.
“We expect the DisCos to use the IGR to fund whatever purchase or use credits to purchase the assets.
“But in the event that they cannot do that and given the liquidity crisis within NESI, the books of the DisCos are already in red.
”So that NERC came up with the regulations, customers can fund the purchase of the DT meters, and they will be refunded.
“In this case, what the regulation stipulates is that the customers have to sign an agreement with the DisCo stating that a certain amount of money has been used to purchase the transformer, and a refund will be made over a certain number of years based on the agreement with interest and dispute resolution clause.”
Mahmoud, therefore, cautioned that it was not the responsibility of the customers to procure transformers for the DisCos.
On Investment in network, Mahmud urged customers not to buy transformers and poles.
“We expect the disco to use their IGR, bank and investment.
“It’s not the responsibility of customers to buy transformers.
“But in the event that they have to do that, they must ensure an agreement is signed for refund,” she added
Also, Mrs Susi Eonwuka, Head, Lagos Office of the Federal Competition and Consumer Protection Commission (FCCPC), urged distribution companies to design effective feedback mechanism in responding to customers’ complaints.
